Little change to the initial estimate as manufacturing sector growth slowed amid geopolitical tensions and intensifying inflation pressures. S&P Global notes that:
"The French manufacturing sector squeezed out further growth in March, although the comedown from February's rebound was marked and served as a reminder of the fragile nature of the recovery.
"It's clear that risks to the sector have built – supply chain problems still remain at large as we received reports from our panellists of the continued struggle to source raw materials and components for their production lines. A faster deterioration in vendor performance during March was unsurprising amid the war in Ukraine, and a resurgence of COVID-19 cases in China.
"Rising geopolitical tensions have also led clients to become more hesitant, especially those based in Europe. There were however some customers who pressed ahead and reportedly brought forward their orders in anticipation of further supply issues and price increases. This is an interesting finding, as it is evidence of rising inflation expectations and suggests that the continued surge in prices will soon begin to bite on demand conditions."
